News Release

Singapore

Shunfu Ville sold for $638 million in largest En Bloc deal in nine years

2016-05-19T16:00:00Z

Possibly third largest Collective Sale in Singapore’s history

Singapore, 20 MAY 2016 – Shunfu Ville, a 358-unit residential development in the popular Bishan/ Thomson area, has been successfully sold to a unit of Qingjian Realty (South Pacific) Group Pte Ltd, a conglomerate with a wide range of business operations such as contracting, investments, real estate development, capital management and logistics.

The massive exercise, which has managed and brokered by JLL, makes Shunfu Ville the first successful collective sale this year, and the largest collective sale in nine years after Farrer Court. Farrer Court holds the record as the largest collective sale when it was sold in June 2007 for $1.3388 billion.

At the sale price of $638 million, Qingjian's purchase reflects a land rate of approximately $747 psf per plot ratio (psf/pr) on the potential GFA, after factoring differential premium payable to the State to top up the lease to a fresh 99 years and for intensification of site.

Shunfu Ville comprises three 16-storey apartment blocks and three low-rise blocks of 6-storey masionettes. It covers a land area of approximately 408,927 sq ft and was built in the late 1980s. Under the Master Plan 2014, it is zoned 'Residential' with a gross plot ratio (GPR) of 2.8 and could potentially yield about 1,100+ units with an average size of 1,000 sq ft.

The deal was struck by private treaty yesterday pursuant to negotiations following the close of a public tender in March, after more than 80 per cent of the owners agreed to lower their threshold to $638 milllion. During the public tender, the property was marketed at a minimum price of $688 million. The deal is conditional upon, amongst several terms, the owners obtaining an order of sale from the Strata Titles Board.

Said Ms Yong Choon Fah, National Director, Capital Markets, JLL: "While the owners did need to adjust their expectations by 7 per cent, the impact was cushioned by declining values of potential replacement homes. The average price the owners would stand to receive from this deal is $1.782 million, which is close to 50 per cent above the typical value of a unit on its own."

"The scale of Shunfu Ville offers the developer in one stroke, a development pipeline similar to them landing two or three sites from the government, which is getting increasingly difficult with their supply slowing down. They would of course need to work towards building and selling all the units within five years, in order to qualify for remission of Additional Buyer's Stamp Duty."

"It is not often that a privatised HUDC estate is launched for collective sale, largely due to the sheer size of such estates. Since 2006, only five have been successfully sold, with the largest being the 618-unit Farrer Court, which was sold for $1.3388 billion in 2007. The other four privatised HUDC estates sold were Gillman Heights ($548 million), Waterfront View ($385 million), Minton Rise ($342 million) and Amberville ($183 million), all in 2006 and 2007."

With a sale price of $638 million, Shunfu Ville stands to be the second largest ex-HUDC estate sold collectively in absolute price terms, as well as the largest en bloc sale in nine years.